Ophir Energy aims for Fortuna FID
Friday, Sep 22, 2017
UK-based Ophir Energy said in its first-half 2017 statement that its priority for the second half of the year was to secure a final investment decision (FID) for the Fortuna FLNG project offshore Equatorial Guinea.

The floating LNG (FLNG) project had made important progress during the first half of 2017, Ophir CEO Nick Coleman said in the company report, adding that project financing was now the outstanding primary milestone to reach.

“Once this is achieved, we will seek shareholder approval and the formal decree from the president of Equatorial Guinea,” Coleman said.

The Fortuna FLNG project is designed to produce an initial volume of 2.2-2.5 million tpy for some 20 years from Block R in the Equatorial Guinea offshore. The project should monetise 2.6 tcf (74 bcm) of natural gas during that period.

Ophir in November 2016 signed a shareholders’ agreement with OneLNG, a joint venture between Golar LNG and Schlumberger, agreeing jointly to develop, finance and operate the project using Golar’s FLNG technology.
The project is now in a position where the partners must secure financing to proceed.

“Significant steps were accomplished in the first half of 2017 towards the FID of the Fortuna FLNG project,” Ophir said in its statement released last week.

“Given that the remaining milestones are dependent on multiple stakeholders, it has proven difficult to precisely forecast FID timing. However, with the strong progress seen in the first half of 2017 and the current intensive effort from all parties, we presently still expect FID of the Fortuna Project to be achieved in 4Q 2017,” the statement said.

Last month, Equatorial Guinea’s Ministry of Mines and Hydrocarbons, Ophir Equatorial Guinea (Block R) Limited, OneLNG SA, and La Compania Nacional De Petroleos De Guinea Ecuatorial (GE Petrol) nominated international trader Guvnor Group as their preferred buyer for offtake from the project.

A statement released August 21 said all the parties had agreed the principal commercial terms subject to finalising a sale and purchase agreement (SPA) prior to the FID. Guvnor has agreed to take all full contract capacity of the Gandria FLNG vessel of 2.2 million tpy, which is to be purchased on a Brent-linked, free on board (FOB) basis for a 10-year period.

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